Gibraltar Takes Steps to Enhance Financial Transparency and Compliance
Gibraltar has made significant amendments to its regulatory requirements for corporate and legal entities to strengthen its anti-money laundering (AML) and combating the financing of terrorism (CFT) framework.
Enhancing Beneficial Ownership Information
The reforms aim to ensure that licensed nominee shareholders and directors maintain accurate and current information on beneficial ownership (BO). This has been praised by international financial regulators, who have acknowledged Gibraltar’s efforts to address deficiencies identified in previous assessments. As a result, Gibraltar’s rating for Recommendation 24 has been upgraded from Partially Compliant (PC) to Largely Compliant (LC).
Strengthening Requirements for Trusts and Trustees
Gibraltar has also made substantial progress in addressing deficiencies related to Recommendation 25, which deals with requirements for trusts and trustees. The authorities have amended the Trustees Act and Regulations 12(1A) RUBOR to impose obligations on trustees to:
- Obtain and hold accurate BO information
- Disclose their status to financial institutions
Consolidating Financial Services Regulations
Gibraltar has introduced new regulations and amendments to existing laws to address issues related to Recommendation 26. The Financial Services Act (FSA) 2019 consolidates EU and local legislations in relation to financial services, providing sector-specific regulations and strengthening the regulatory framework.
International Recognition
The reforms have been welcomed by international financial regulators, who praised Gibraltar’s efforts to address identified deficiencies. “Gibraltar has made significant progress in addressing these issues,” said a spokesperson for the Financial Action Task Force (FATF). “We commend their commitment to enhancing financial transparency and compliance.”
Sanctions for Non-Compliance
Gibraltar has also strengthened its sanctions regime by introducing:
- Proportionate and dissuasive civil and criminal penalties for entities and individuals that fail to comply with the requirements of the Regulations
- Civil and criminal penalties will ensure that those who violate the regulations face appropriate consequences, deterring non-compliance
Conclusion
Gibraltar’s efforts to enhance financial transparency and compliance are a significant step forward in maintaining its reputation as a responsible international financial center. The reforms demonstrate the territory’s commitment to meeting international standards and cooperating with global authorities to prevent money laundering and terrorist financing.